Bare Acts

CHAPTER II: REGULATION OF FOREIGN CONTRIBUTION AND FOREIGN HOSPITALITY


n the association for which it was received, or
(ii) to any other person, if he knows or has reasonable cause to believe that such other
person intends, or is likely, to deliver such currency to an association other than the
association for which such currency was received.
5. Organisation of a political nature not to accept foreign contribution except with the prior
permission of the Central Government
(1) No organisation of a political nature, not being a political party, shall, accept any foreign
contribution except with the prior permission of the Central Government.
Explanation: For the purposes of this section, "organisation of a political nature, not being a political
party" means such organisation as the Central Government may, having regard to the activities of the
organisation or the ideology propagated by the organisation or the programme of the organisation or
the association of the organisation with the activities of any political party, by an order published in the
Official Gazette, specify in this behalf.
(2) (a) Except with the prior permission of the Central Government, no person, resident in India and
no citizen of India, resident outside India, shall accept any foreign contribution, or acquire or agree to
acquire any foreign currency, on behalf of an organisation referred to in sub-section (1).
(b) Except with the prior permission of the Central Government, no person, resident in India,
shall deliver any foreign currency to any person if he knows or has reasonable cause to
believe that such other person intends, or is likely, to deliver such currency to an organisation
referred to in sub-section (1).
(c) Except with the prior approval of the Central Government, no citizen of India, resident
outside India, shall deliver any currency, whether Indian or foreign, which has been accepted
from any foreign source, to-
(i) any organisation referred to in sub-section (1), or
(ii) any person, if he knows or has reasonable cause to believe that such person
intends, or is likely, to deliver such currency to an organisation referred to in subsection (1).
6. Certain associations and persons receiving foreign contribution to give intimation to the
Central Government
4
[(1) No association other than an organisation referred to in sub-section (1) of section 5 having a
definite cultural, economic, educational, religious or social programme shall accept foreign
contribution unless such association,-
(a) registers itself with the Central Government in accordance with the rules made under this
Act; and
(b) agrees to receive such foreign contributions only through such one of the branches of a
bank as it may specify in its application for such registration,
and every association so registered shall give, within such time and in such manner as may be
prescribed, an intimation to the Central Government as to the amount of each foreign contribution
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received by it, the source from which and the manner in which such foreign contribution was received
and the purposes for which, and the manner in which, such foreign contribution was utilised by it:
PROVIDED that where such association obtains any foreign contribution through any branch other
than the branch of the bank through which it has agreed to receive foreign contribution or fails to give
such intimation within the prescribed time or in the prescribed manner, or gives any intimation which is
false, the Central Government may, by notification in the Official Gazette, direct that such association
shall not, after the date of issue of such notification, accept any foreign contribution without the prior
permission of the Central Government.
(1A) Every association referred to in sub-section (1) may, if it is not registered with the Central
Government under that sub-section, accept any foreign contribution only after obtaining the prior
permission of the Central Government and shall also give, within such time and in such manner as
may be prescribed an intimation to the Central Government as to the amount of foreign contribution
received by it, the source from which and the manner in which such foreign contribution was received
and the purpose for which and the manner in which such foreign contribution was utilised by it.
(2) Every candidate for election, who had received any foreign contribution, at any time within one
hundred and eighty days immediately preceding the date on which he is duly nominated as such
candidate, shall give, within such time and in such manner as may be prescribed, an intimation to the
Central Government as to the amount of foreign contribution received by him, the source from which
and the manner in which such foreign contribution was received and the purposes for which, and the
manner in which, such foreign contribution was utilised by him.
7. Recipients of scholarships, etc., to give intimation to the Central Government
(1) Every citizen of India receiving any scholarship, stipend or any payment of a like nature from any
foreign source shall give, within such time and in such manner as may be prescribed, an intimation to
the Central Government as to the amount of the scholarship, stipend or other payment received by
him and the foreign source from which, and the purpose for which, such scholarship, stipend or other
payment has been, or is being, received by him.
(2) Where any recurring payments are being received by any citizen of India from any foreign source
by way of scholarship, stipend or other payment, it shall be sufficient if the intimation referred to in
sub-section (1) includes a precise information as to the intervals at which, and the purpose for which,
such recurring payments will be received by such citizen of India.
(3) It shall not be necessary to give such intimation as is referred to in sub-section (1) or sub-section
(2) in relation to scholarships, stipends or payments of a like nature, if the annual value of such
scholarships, stipends or other payments does not exceed such limits as the Central Government
may, by rules made under this Act, specify in this behalf.
8. Persons to whom section 4 shall not apply
Nothing contained in section 4 shall apply to the acceptance, by any person specified in that section,
of any foreign contribution, where such contribution is accepted by him, subject to the provisions of
section 10,-
(a) by way of salary, wages or other remuneration due to him or to any group of persons
working under him, from any foreign source or by way of payment in the ordinary course of
business transacted in India by such foreign source; or
(b) by way of payment, in the course of international trade or commerce, or in the ordinary
course of business transacted by him outside India; or
(c) as an agent of a foreign source in relation to any transaction made by such foreign source
with government; or
(d) by way of a gift or presentation made to him as a member of any Indian delegation,
provided that such gift or present was accepted in accordance with the regulations made by
the Central Government with regard to the acceptance or retention of such gift or
presentation; or
(e) from his relative when such foreign contribution has been received with the previous
permission of the Central Government:
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PROVIDED that no such permission shall be required if the amount of foreign contribution received by
him from his relative does not exceed, in value, eight thousand rupees per annum and an intimation is
given by him to the Central Government as to the amount received, the source from which and the
manner in which it was received and the purpose for which and the manner in which it was utilised by
him,
(f) by way of remittance received, in the ordinary course of business, through any official
channel, post office, or any authorised dealer in foreign exchange under the Foreign
Exchange Regulation Act, 1973 (46 of 1973).
Explanation: In this Act, the expression "relative" has the meaning assigned to it in the Companies
Act, 1956 (1 of 1956).
9. Restrictions on acceptance of foreign hospitality
No member of a Legislature, office-bearer of a political party, 1
[Judge,]government servant or
employee of any corporation shall, while visiting -any country or territory outside India, accept, except
with the prior permission of the Central Government, any foreign hospitality:
PROVIDED that it shall not be necessary to obtain any such permission for an emergent medical aid
needed on account of sudden illness contracted during a visit outside India, but, where such foreign
hospitality has been received, the person receiving such hospitality shall give, within one month from
the date of receipt of such hospitality, an intimation to the Central Government as to the receipt of
such hospitality and the source from which, and the manner in which, such hospitality was received by
him.
10. Power of Central Government to prohibit receipt of foreign contribution, etc., in certain
cases
The Central Government may-
(a) prohibit any association, not specified in section 4, or any person, from accepting any
foreign contribution;
(b) 5
[without prejudice to the provisions of sub-section (1) of section 6, require any association
specified in that sub-section], to obtain prior permission of the Central Government before
accepting any foreign contribution;
(c) require any person or class of persons or any association not being an association
specified in section 6, to furnish intimation within such time and in such manner as may be
prescribed as to the amount of any foreign contribution received by such person or class of
persons or association, as the case may be, and the source from which and the manner in
which such contribution was received and the purpose for which and the manner in which
such foreign contribution was utilised;
(d) require any person or class of persons, not specified in section 9, to obtain prior
permission of the Central Government before accepting any foreign hospitality;
(e) require any person or class of persons, not specified in section 9, to furnish intimation,
within such time and in such manner as may be prescribed, as to the receipt of any foreign
hospitality, the source from which and the manner in which such hospitality was received :
PROVIDED that no such prohibition or requirement shall be made unless the Central Government is
satisfied that the acceptance of foreign contribution by such association or person or class of persons,
as the case may be, the acceptance of foreign hospitality by such person, is likely to affect
prejudicially-
(i) the sovereignty and integrity of India; or
(ii) the public interest; or
(iii) freedom or fairness of election to any Legislature; or
(iv) friendly relations with any foreign State; or
(v) harmony between religious, racial, linguistic or regional groups, castes or communities.
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11. Application to be made in prescribed form for obtaining prior permission to accept foreign
contribution or hospitality
(1) Every individual, association, organisation or other person, who is required by or under this Act to
obtain the prior permission of the Central Government to accept any foreign contribution, or foreign
hospitality, shall before the acceptance of any such contribution or hospitality, make an application for
such permission to the Central Government in such form and in such manner as may be prescribed.
(2) If an application referred to in sub-section (1) is not disposed of within ninety days from the date of
receipt of such application, the permission prayed for in such application shall, on the expiry of the
said period of ninety days, be deemed to have been granted by the Central Government:
PROVIDED that, where in relation to an application, the Central Government has informed the
applicant the special difficulties by reason of which his application cannot be disposed of within the
said period of ninety days, such application shall not, until the expiry of a further period of thirty days,
be deemed to have been granted by the Central Government. 

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